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A share of ABC stock was worth in 2005 and only worth in 2010.

  1. Find the multiplier and the percent decrease.

    Create a table to help you find the multiplier.

    Solve for

    To find the percent decrease, divide the amount of the decrease by the starting value and convert to a percent.

  2. Write an exponential function that models the value of the stock starting from 2005.

    Use the general form of an exponential equation: , where m is the multiplier found in part (a), and is the initial value.

  3. Assuming that the decline in value continues at the same rate, use your answer to (b) to predict the value in 2020.